NRO Savings account: Eligibility, documents, and benefits

nro bank account

A Citizen of India who stays abroad for business, employment or intends on staying for an uncertain period outside India is an NRI. With a Non-Resident Ordinary ( NRO ) savings account, NRI’s can keep control of their earnings made in India such as dividends, pension, salaries, and rents. The account opened in the name of NRI in India. NRO accounts are rupee dominated accounts. They find it burdensome to manage bank accounts in another country and can deposit their collected funds in NRO savings account without any inconvenience.

 

A Person of Indian Origin ( PIO ) and Overseas Citizen of India ( OCI ) can also open an NRO savings account. PIOs who at any point had an Indian passport or their parents or grandparents were a citizen of India. OCI is a status of immigration that permits a foreign citizen from the origin of India to work for an indefinite period in the Republic of India. NRI’s not allowed having a savings account in their name in India as considered illegal. It’s required to convert the savings made abroad into the NRO savings account. Balance cannot be recovered from the NRO account. With the NRO Savings account, you can give donations and make payments of your utility bills conveniently.

Features of an NRO savings account

Opening an NRO savings account will allow you to send the earnings made abroad to India at any point by freely converting the foreign money in Indian currency You can also jointly make an account with a resident of India or a close relative or even an NRI. However, you cannot remit more than one million in a financial year ( April – March ) as there a restriction on repatriation. Although, the total amount be repatriated freely after payment of applicable taxes. The average balance maintained monthly for an NRO savings account Rs 75,000, and it may vary from bank to bank. You can deposit the amount in both Indian and Foreign currency and receive funds in the currency of India. No risks involved in NRO accounts.

 

One can easily withdraw or pay in cash while shopping abroad or India. The interest earned on NRO account taxable. The funds used to make local payments also. The funds accessed in INR in India and converted into foreign currency if you want to spend it abroad. Regular alerts and statements sent to keep the account holder up-to-date regarding various banking operations. NRI’s required to provide a Tax Residency Certificate to enjoy the benefits of lower tax rates as prescribed by the Income Tax of India to avoid the hassles of double taxation.

 

The eligibility criteria for opening NRO savings account is

  • Students who pursue higher studies in foreign countries
  • Employees of the Indian Government working in foreign nations. In such cases, they required to provide a separate diplomat passport.
  • Any NRI or PIO can apply as per the Foreign Exchange Management Act
  • Any Indian national who may be a seafarer

 

To submit the account opening form in any Indian bank, an NRI needs the following documents

  • Photocopy of your Indian passport where all your personal and passport details mentioned like, name, place, and date of birth, photograph, address details, signature, issue, and expiry date recorded.
  • Photocopy of valid visa
  • Proof of the local or overseas address
  • Latest passport-sized color photograph
  • Photocopy of PAN card
  • NRI status proof

 

To send the account opening form overseas, an NRI needs the following documents

  • Latest passport-sized color photograph
  • Photocopy of valid visa
  • Proof of local or overseas address
  • Photocopy of your Indian passport where all your personal and passport details mentioned like, name, place, and date of birth, photograph, address details, signature, issue, and expiry date recorded.
  • NRI status proof
  • Photocopy of PAN card

All the documents attested by an overseas bank official operating and located in certain foreign countries. It also attested by any Indian commercial bank branch having an overseas branch. In the case of self-attestation, an individual is required to submit their original utility bills, credit card statement and bank account statement.

The fees and charges of NRO savings account include transfer fees, fees of the checkbook, annual fees, fees for the closing of account and penalty fees if any. The facility of nomination where a nominee entitled to the proceedings of the NRI’s account on the event of their death.

 

 

 

 

 

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